March is National Ethics month, promoted by many fine insurance organizations such as the CPCU Society. So it seems only fitting I am watching the movie “Gettysburg.” What does a movie about one of the most frequently discussed and hotly debated battles in U.S. history have to do with insurance ethics? Well, since you asked….

Ethics also is one of the most frequently discussed and hotly debated topics in our society, not to mention the insurance industry. And just as Civil War buffs tend to let emotions and myths interfere with historical facts, people who discuss ethics inevitably lapse into disagreements about morals and values. Since many states now require completion of an ethics class as a criterion for meeting CE requirements, no doubt there is a lot of disagreeing going on in our business.

Trying to avoid the “morals/values” trap leads many ethics programs onto the rocks. Hoping to steer clear of any issue that might cause friction, they end up taking one of two paths: making the case studies and examples so egregious and/or illegal that no one could possibly suggest an ethical defense for them' or seeking a middle ground so meek and mild as to make Pablum seem Cajun-spiced by comparison. The problem? Both approaches render the subject meaningless and thus minimize its impact on the ethical behavior of the students.

Perhaps this is why Enron, which had extensive and organized ethics policies and procedures in place, still wandered down the path to perdition. Law schools and business schools now are scrambling to add ethics courses to their catalogues, with little apparent impact beyond garnering publicity for their efforts. As a result, many scholars say that teaching ethics is useless, arguing that by the time a person reaches college age or adulthood, his or her values and morals (and, by implication, ethics) already are set.

That may be going a bit too far. Just because some Civil War buffs get overheated when debating whether the South fought for something as noble as states' rights or as terrible as slavery doesn't mean the conflict is not worth studying. Perhaps the focus is simply in the wrong place. To put it in Gettysburg terms, the question is not about individual beliefs on the Confederate side, it's about why, when it came time for Pickett's Charge, the soldiers stepped out from the trees.

Ethical behavior isn't solely about morals and values; it's about what will lead us to make choices and take actions that demonstrate integrity and inspire the trust of our clients and the public. Put aside your specific morals and values, and ask yourself the “Gettysburg” question: When it's time to put yourself at risk, are you ready to step out from the trees?

The CPCU Society offers a course called Street Level Ethics to its local chapters and other insurance organizations. (Full disclosure: I helped develop the materials.) The course presents real situations regularly faced by agents, underwriters and adjusters, and pose questions about the ethics involved in each one, with no obvious answers. That's because the point isn't to create politically correct scenarios where any decision can be argued to be right in a given set of circumstances (known as situational ethics); it is to demonstrate that moral people with solid values may disagree as to the “correct” answer when facing the same set of facts.

The premise may seem contradictory to some who measure the ethics of others by their own personal moral code (agree with me, you're ethical; disagree and you aren't), or to those who feel there is a single, absolute moral code to which all must adhere. Such discussions are valuable in a philosophical debate, but often fall short in providing practical guidelines for ethical decision-making. A discussion of which moral code should be honored as absolute is bound to end in disagreement because of religious and cultural differences. Even using the simple yardstick of whether something is legal or illegal soon leads us to that swamp represented by the statement, “It may be legal, but it isn't moral!” Does that mean civil disobedience, a time-honored method of protest, is by definition “unethical”?

Clearly we need something that goes beyond individual values and morals if we are to agree that a given action will be deemed “ethical,” and that something is a “code of ethics.” It can be internal, or created especially to guide the decisions of members of various associations and societies. An effective code is not a mere statement of values and morals, but a guide for action. Once your code is chosen, post it prominently to tell the world you have decided to abide by it, for that's where its true value lies.

To illustrate, consider the first canon of the Code of Professional Ethics of the American Institute for CPCU, which reads: “CPCUs should endeavor at all times to place the public interest above their own.” That's quite a promise. Does it mean that a CPCU's clients' interests take precedence over those of his or her business, carrier and fellow professionals? Yes. In fact, a reading of the associated AICPCU Canons and Rules of the Code of Professional Ethics reinforces this principle at every turn.

A code of ethics, when properly applied, creates expectations in others that we either meet or not, depending on our choices. Meeting those expectations-behaving “ethically” by doing what we promised-demonstrates integrity and inspires the trust that we sorely need to succeed in a business that appears complex and contradictory even to the best of outside observers.

The key to true ethical behavior is that observers know you have a choice. You don't have to promise to abide by any code. You have a right to argue, as many in business today do, that decisions are too complex to make commitments, so others will just have to “trust” you. But every Enron-like scandal and E&O claim for nonperformance diminishes the number of potential clients willing to allow you that freedom. By choosing to be accountable, and making sure your actions measure up to your promise, you gain power and credibility. “You're as good as your word” is a powerful compliment, but you'll hear it only after you have given your word.

Let's return to the men in gray uniforms sitting among the trees outside Gettysburg. Was it morals and values that inspired their sacrifice? If so, which ones: support for slavery, political beliefs favoring states' rights over a unified country, a lifestyle in an idealized “Dixie” that claimed to be a more moral environment than that of the increasingly industrialized and impersonal northern cities? While all of these factors and many more may have played a part, the men disagreed among themselves about such issues. And there were other good and noble reasons not to take the risk they did, including the possible losses to their businesses, farms, towns and families.

Clearly something more was needed for soldiers to take such a risky action as Pickett's Charge. It wasn't their individual morals and values that forever enshrined those men as gallant and brave. It was a decision they all had made long before-to adhere to a code of behavior by which they were willing to be measured and judged, a code that was based on individual values and morals, yet transcended them all. They had promised themselves, their officers and their country that when the time came, they would do their duty as soldiers, even if it meant making the ultimate sacrifice. For many, that time came on July 3, 1863, at Gettysburg. When given the order, the men stepped out of the trees and into history.

By what code are your ethics measured? Make a choice. Leave no room for doubt among your clients and colleagues that at the moment of decision, you will not seek cover in the woods of rationalization. Commit to stay true to your ethical promise and accept the potential risks. And when the time comes, step out of the trees.

AICPCU puts 'Street-Level Ethics' material online

For Ethics Awareness Month the American Institute for CPCU has developed a PowerPoint presentation for its “Street-Level Ethics” workshop. The presentation expands the workshop materials, which the American Institute introduced last year. In addition, all of the materials are now available on its Web site, www.aicpcu.org. The “Street-Level Ethics” workshop was originally developed to enable CPCUs to conduct effective chapter meetings on ethics. The American Institute, however, is making the workshop available to all interested industry practitioners, asking only that users give credit to the American Institute and to Chris Amrhein, AAI, as the developers of the materials.

Special Reports /

Policy Issues: Ethics: a code to guide you when integrity is on the line

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